Read? Components Of Passive Income
Ready to poke at uniquely Singapore Koala/Panda retail investors in SGX?
Somehow, this strategy is less mentioned by CPF 1M65 movement or CPF investment strategy advised by FAs.
Becoming CPF Millionaire on barbell investment cash flow strategy with CPFIS after 55
Don't close your CPFIS after 55!
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CW,
ReplyDeleteI'll bite!
When people think of passive income, we are thinking more of INVESTING - you know, put $1 in, hope to get more than $10, $100, $1,000 back ;)
CPF is SAVINGS lah. If we put $1 into CPF or a bank, and withdraw 1 cent out per month, and call that "passive income"... Hey! Whatever makes you happy!
I know what you gonna say, interest earned is passive leh.
Yup. Anyone and everyone can have "passive income"!
Just open a bank savings account will do ;)
LOL!
P.S. Marry rich and/or having rich parents still the best lah for "passive income" ;)
Uncle8888,
ReplyDeleteHaha, think most younger sinkies don't have much cpf-oa to invest, unless they stick to BTOs in non-mature estates.
Many will also want to treat their cpf as the "bond" portion of their total portfolio, or as emergency fund for mortgage.
Actually savings & investing can be complementary, no need to be binary about it. It's all about opportunity cost, risk appetite, job security, type of career/job, investing interest ... i.e. unique individual circumstances.
Very high income persons with much lower expenses may not need to invest at all. While a $3K/month person with high loss aversion/low pain threshold may be better off upskilling & trying to get into high-growth industries than trying to learn how to invest or trade.
Majority of people are not cut out to be patient long-term diversified investors. Hence to get better than the 2.5% CPF interest over 25-40 years, my personal belief that only a govt-supervised mandatory investment will do (I know SMOL will freak out over this! 🤣).
Such investment can be tendered out to companies like Vanguard or Blackrock or Dimensional or even our local banks etc & using low-cost ETFs and index funds. Btw, this is what M'sia's EPF does (else M'sians' EPF savings would have been hantam over the last 20 years by currency depreciation & inflation).
Unfortunately S'pore has self-inflicted a big Achilles heel into our CPF --- allowing for property purchase & letting property ecosystem becoming an existential component of local economy. 😉
if only if its so easy to know its a market crash and sti is bullish. so is the current situation a crash?
ReplyDeleteHi CW,
ReplyDeleteI was greatly inspired by your achievement in accumulating $1M in your OA when I first read about it in your blog few years back. It was an admirable and commendable achievement on so many levels:
1. As a sole breadwinner
2. With 3 children and sponsoring all through to university
3. Home fully paid for
4. Still have not drawndown the principal at age of 64
I also like your blog posts. Admittedly I had some difficulty understanding your blog posts initially but after following your blogs for sometime, I can understand your writing better. In fact I think your blog posts are among the better ones with few words but many diagrams to convey your message. Messages which convey the "secrets" to wealth building such as invested wealth is an illusion, the human asset is our best asset in generating wealth through earned income, how to prepare for a sustainable retirement, how to become a CPF OA millionaire and many more!
Really enjoyed reading your blog. Keep it up!